Why Moab Minerals Is Betting Big on Manyoni Uranium After Sasare Deal Collapse
Moab Minerals has terminated its acquisition of the Sasare Cu-Au Project in Zambia and is now concentrating on advancing its Manyoni Uranium Project in Tanzania, buoyed by strong uranium prices and strategic tenement acquisitions.
- Termination of Sasare Cu-Au Project acquisition due to unmet due diligence conditions
- Strategic pivot to Manyoni Uranium Project amid robust uranium market
- Completion of adjoining AuKing tenements acquisition pending shareholder approval
- Secured $600,000 unsecured loan from European Lithium Ltd
- Plans for metallurgical testwork and a Scoping Study at Manyoni
Strategic Shift Following Sasare Acquisition Termination
Moab Minerals Limited (ASX – MOM) has announced a significant strategic pivot after terminating its agreement to acquire the Sasare Copper-Gold Project in Zambia. The termination, driven by the non-satisfaction of due diligence conditions, marks a clear refocus of the company’s efforts towards its Manyoni Uranium Project in Tanzania. This move aligns with the current strength in the uranium market, where spot prices recently surged to over US$101 per pound, enhancing the economic viability of uranium assets.
Advancing the Manyoni Uranium Project
The Manyoni Project, where Moab holds an 80% interest, has seen its historic mineral resource estimate upgraded to JORC 2012 compliance, reflecting a 25% increase in contained uranium oxide to 27.19 million pounds at an average grade of 136 ppm. The geology is promising, with drilling confirming a flat-lying palaeochannel system that may support low-cost strip mining due to minimal overburden. Notably, the project’s Area A mineralisation extends the known uranium system, while a high-grade core in Area C1 offers potential for early-stage development.
Tenement Consolidation and Upcoming Studies
Moab is on track to complete the acquisition of four adjoining tenements from AuKing Ltd, which host known uranium prospects previously drilled by Uranex Ltd. This consolidation is expected to strengthen the project’s scale and resource base. The company plans to undertake mineralogy and metallurgical testwork on core samples in the current quarter, aiming to identify an optimal beneficiation pathway. These efforts will feed into a Scoping Study scheduled for the June quarter, a critical step in defining the project’s development strategy.
Financial Position and Corporate Developments
On the financial front, Moab secured a $600,000 unsecured loan facility from European Lithium Ltd, accruing interest at 10% per annum and repayable in December 2026. The company also issued shares and unlisted options as part of its capital management and vendor agreements. Operating and investing activities during the quarter resulted in cash outflows, but Moab ended the period with $405,000 in cash. Related party transactions, including loans and option issuances involving directors, were disclosed transparently, reflecting ongoing governance adherence.
Outlook and Market Context
Moab’s decision to double down on uranium exploration comes at a time when the sector is experiencing renewed investor interest due to rising uranium prices and global energy transition dynamics. While the company continues to evaluate other resource opportunities, the Manyoni Project stands out as the immediate focus. The upcoming metallurgical results and Scoping Study will be pivotal in shaping Moab’s development pathway and funding requirements.
Bottom Line?
Moab’s renewed focus on Manyoni uranium positions it well to capitalise on market momentum, but funding and development milestones remain critical hurdles ahead.
Questions in the middle?
- How will Moab finance its development plans beyond the current cash runway?
- What are the expected timelines and outcomes for the upcoming metallurgical testwork and Scoping Study?
- Could Moab revisit copper-gold opportunities or other resource sectors to diversify its portfolio?
